Bond, currency and commodities traders will probably have their payouts cut about 5%, it said.

Morgan Stanley will distribute a larger share of bonuses in cash instead of deferred payments, the Journal said. The firm deferred bonuses last year for people getting both total pay of more than $350,000 and at least $50,000 of incentive compensation.

Wall Street firms are under pressure to increase rewards for equity traders and dealmakers whose divisions fueled revenue this year amid a slump in fixed-income business. Total pay for employees in fixed-income units may be down 10%, recruitment firm Options Group wrote in a November report.

Ian Bolland

A journalism graduate of Liverpool John Moores University. During his time at university, Ian spent time on work experience at local newspapers in Liverpool, Bolton and Wigan, and prior to that he did work for The Observer's 'fans verdict'. Ian also has interests in news, current affairs and business but mostly sport, including football, rugby league, cricket, golf and Formula 1, amongst others.